Laos is one of Southeast Asia’s most stunning countries despite being one of the poorest in the region with a GDP per capita currently just over $2,100. However, there has been considerable progress of late as poverty has halved and significant improvements in education and healthcare.

This landlocked nation bordered by Myanmar and China to the north, Thailand to the west, Vietnam to the east, and Cambodia to the south, has a fascinating but troubled past. Increasing financial inclusion will unlock the country’s potential and help it navigate a path forward against a backdrop of high debt and inflation.

With a population of 7.4 million (with a median age of 26), Laos has around 42 banks in operation across the country and just 1.5m bank accounts. This leaves an addressable market of approximately 4.5 million people that will be supported by greater financial inclusion to give Laos citizens better access to banking and financial tools.

A major reason for a lack of financial access is that 60% of the population lives in the countryside where traditional banking struggles to reach. There are progressive services such as M-Money that are working to introduce cash-in/cash-out locations to rural areas to empower these communities. Expansive plans are afoot to establish Xprizo’s agents in every Laos village, with the help of local partnerships, for villages with a population of more than 300. This replicates successful models that have produced results in Kenya. This is an area where Xprizo has achieved significant success in countries like Kenya, which is the base for the company’s operations for East Africa. Supporting these communities using technology makes financial services easily accessible and improves the lives of rural populations. Access to digital financial tools enables small businesses and entrepreneurs to transact more efficiently, expanding opportunities for income generation.

Laos is well placed for this financial revolution as mobile penetration and internet penetration are 88.5% and 66%, respectively. In 2016 the digital tax payment was launched to streamline processes and minimise the role of cash within the economy. 

Mobile money, digital payment systems and cross-border collaborations will help Laos drive economic growth. This in turn reduces poverty by supporting rural and underserved communities. Modernising financial infrastructure empowers both individuals and companies by forming a foundation for long-term, sustainable growth.

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